RIG close to $42, a longterm support line:
Given the recent oil finds off the coast of Brazil, we expect the market supply of deep-sea drillers to remain relatively tight. This should be a bright spot for the firm given this is where it excels the most and the fact that shallow and mid-water exploration pricing remains weaker and the market is more volatile. With RIG holding the dominant position in deep sea drilling, the prospects for the firm look great even with oil prices remaining weak in the short term.
seekingalpha.com
Transocean owns (or co-owns) and operates 136 mobile offshore drilling units, including 48 High-Specification rigs (Ultra-Deepwater, Deepwater and Harsh Environment), 25 Midwater Floaters, 9 High-Specification Jackups, and 51 Standard Jackups. Four High-Specification Jackups are also under construction. The NY Times estimated that the company owned almost half of all deepwater platforms in the world in 2010.
marginofsafetyportfolio.com
...many rigs were taken off line after the BP (BP) spill but are being all brought back and all should be in operation by the end of the year. seekingalpha.com
Viewed as one of the primary villains of the Gulf of Mexico oil spill along with BP (NYSE: BP), Transocean fought in various Swiss courts for close to a year to get permission to pay the dividend it now pays topstockanalysts.com
The recent quarterly dividend of $0.79, was the first dividend payment since 2002. Management has said that dividend will be "recurring, sustainable". 0.79X4/45 = 7.0% yield.
3.4B$ cash = 11$/share
LT debt/cap = 0.3
my comment:
RIG, like SU, is a bet on high oil prices. Deepwater drilling, like Alberta oil sands, is an expensive way to get oil. Brent under $80, or any fear we might see those prices, destroys stocks like this.
If RIG hits $42, bounces, and volume spikes, we may be seeing a bottom.
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